Not upheld: fraud and identity theft - unauthorized account opening complaint against TSB plc

Decision detail

Summary

The Estate of the late Mr Y complained that TSB fraudulently opened two bank accounts using his stolen identity after his death and failed to properly investigate or resolve the matter. A fraudster had used Mr Y's details to open a TSB account, which automatically triggered a second account. The ombudsman found that TSB took appropriate steps by closing the accounts and found no fault in TSB's handling. The ombudsman declined to award compensation for distress and inconvenience to the estate, as the FOS does not make such awards to estates of deceased complainants, particularly where events occurred after death. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while a fraudster used the late Mr Y's stolen identity to open accounts, TSB took appropriate remedial steps by closing the accounts. The ombudsman noted that either TSB should have detected the fraud at application or the application appeared legitimate at the time. Critically, the ombudsman determined that the FOS does not make distress and inconvenience awards to the estates of deceased complainants, particularly where the complained-of events occurred after the person's death. No fault was found in TSB's handling of the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website